Pam Miletello v. R M R Mechanical, Incorporated, e
Opinion
This case is a dispute between decedent Gerald Miletello's ex-wife Sandra and widow Pam about who is entitled to the funds in Gerald's 401(k) retirement account. The dispute hinges on the existence and timing of a "qualified domestic relations order," or QDRO, which is controlled by federal law. The district court granted summary *495 judgment in favor of Sandra, concluding that she had timely received a QDRO. For the reasons set forth below, we AFFIRM the district court's judgment that Sandra is entitled to $ 500,000 of the 401(k) balance.
I. Background
A. The ERISA Regulatory Scheme
The Employee Retirement Income Security Act of 1974 ("ERISA") is a comprehensive federal statute that regulates employee benefit plans.
Boggs v. Boggs
,
But those prohibitions do not apply in the case of a QDRO.
A DRO must satisfy certain requirements to be a QDRO.
Boggs
,
During any period in which the issue of whether a [DRO] is a [QDRO] is being determined (by the plan administrator, by a court of competent jurisdiction, or otherwise), the plan administrator shall separately account for the amounts (hereinafter ... the "segregated amounts") which would have been payable to the alternate payee during such period if the order had been determined to be a [QDRO].
*496 B. Factual Background
Gerald Miletello and Appellee Sandra Bellgard Miletello were married. Gerald participated in a 401(k) plan set up and administered by Appellee RMR Mechanical, Inc. ("RMR"). He designated Sandra as the beneficiary of the Plan.
Sandra and Gerald divorced on January 21, 2014. Gerald married Appellant Pam Miletello four months later, in May 2014. As part of the divorce, Sandra and Gerald agreed to a community property settlement (the "Divorce Settlement"). The Divorce Settlement awarded $500,000 of the funds in the 401(k), or the balance of the 401(k) if it was less than $500,000, to Sandra. Gerald and Sandra executed the Divorce Settlement on April 20, 2015, and May 4, 2015, respectively.
Gerald died in a plane crash on October 26, 2015. Shortly thereafter, on October 28, 2015, the state court entered a judgment of partition incorporating the terms of the Divorce Settlement into the divorce decree.
On November 22, 2016, Pam sued in federal court to claim the 401(k) funds as Gerald's surviving spouse. The court later granted RMR's motion to deposit the disputed funds into the court registry pending resolution of this dispute.
On January 18, 2017, the state court entered a QDRO pursuant to the Divorce Settlement. The QDRO granted Sandra $500,000 of the 401(k) funds. On August 1, 2017, the state court issued an "Amended QDRO" providing that it "shall have retroactive effect and be a nunc pro tunc order with an effective date of May 4, 2015," the day the Divorce Settlement was executed.
Pam and Sandra filed cross-motions for summary judgment. The district court entered summary judgment for Sandra. Pam now appeals.
II. Standard of Review
We review a district court's grant of summary judgment
de novo
.
Martinez v. Tex. Workforce Comm'n-Civil Rights Div.
,
III. Discussion
The core question in this case is whether Sandra timely obtained a QDRO. Pam argues that Sandra cannot claim any 401(k) funds because she did not receive a QDRO within eighteen months of the October 28, 2015, judgment of partition-the event that Pam says starts the clock for determining whether a DRO is a QDRO.
See
Pam incorrectly asserts that the January 18, 2017 QDRO cannot be effective because it post-dates Gerald's death. She relies on
Rivers v. Central & South West Corp.
,
Since
Rivers
was decided, Congress has modified ERISA to make "clear that a QDRO will not fail solely because of the time at which it [was] issued."
Yale-New Haven Hosp. v. Nicholls
,
IV. Conclusion
For the foregoing reasons, we AFFIRM the district court's judgment awarding $ 500,000 of the 401(k) funds to Sandra. 4
The statute provides that a court of competent jurisdiction may determine whether a DRO is a QDRO.
The judgment of partition did not contain "the last known mailing address (if any) of the participant and the name and mailing address of each alternate payee covered by the order."
See
We need not decide whether this legislation and regulation abrogate Rivers . The facts there are so egregious as to be different from this case.
In passing, Sandra argues she is entitled to the entire 401(k). A party who desires greater relief than what the district court awards must appeal or cross-appeal the district court's order.
See
Robicheaux v. Radcliff Material, Inc.
,
Reference
- Full Case Name
- Pam MILETELLO, Plaintiff - Appellant v. R M R MECHANICAL, INCORPORATED; Sandra Bellgard Miletello, Defendants - Appellees
- Cited By
- 4 cases
- Status
- Published